Hon. Glenn Thibeault   …

Hon. Glenn Thibeault

 

Minister of Energy

 

4th Floor, Hearst Block

 

900 Bay Street

 

Toronto, Ontario

 

M7A 2E1

 

Dear Minister Thibeault,

 

Please find enclosed Bruce Power’s formal submission to the 2016 Long-Term Energy Plan (LTEP) review process. In this submission, we outline our commitment to being a low-cost provider of electricity to Ontario families and business for many years to come, while keeping the air we breathe clean and the economy strong.

 

Bruce Power recognizes the importance of the LTEP in Ontario and supports the review of the policy on a regular basis to engage the public, energy sector and other stakeholders in an open and transparent way.

 

We are proud to be a part of Ontario’s energy solution – both today and over the long term. Based in rural Ontario, we have a significant economic presence in Bruce, Huron and Grey counties and continue to drive significant economic activity throughout the province. In addition, with families working harder than ever to balance their household expenses and businesses striving to remain competitive and strong, the clean, low-cost, stable electricity we provide positively supports Ontarians every day.

 

We are proud to generate 30 per cent of Ontario’s electricity at 30 per cent less than the average residential price of power, and look forward to being a low-cost generator for many years to come. To date in 2016, Bruce Power has produced power at 6.6 cents per kw/h, while the average residential price is approximately 11 cents per kw/h. While there are many components that make up an electricity bill, including distribution and transmission charges, if Ontarians received 100 per cent of their electricity from Bruce Power, the cost of their energy consumption would be about 30 per cent less.

 

To help Ontario secure low-cost electricity over the long term, we are carrying out life-extension work on all of our units. This $13 billion program, which commenced in January 2016, is on time and on budget, and through our agreement with the Independent Electricity System Operator (IESO), we will remain accountable to meet the investment requirements of these projects and assume all risk of cost overruns.

 

We are aware of the importance your government places on meeting Ontario’s and, by extension, Canada’s climate change targets, and understand the role nuclear plays in achieving these goals. Combined, Bruce Power, Darlington and Pickering will generate approximately 50 to 55 per cent of Ontario’s electricity from 2017-24 and 40 to 45 per cent from 2024 to beyond 2050, while generating zero carbon emissions. This makes nuclear critical to these long-term climate change goals.

 

Without this high volume of clean, reliable generation, these targets cannot be achieved in an affordable way. In fact, between 2017 and 2064, clean nuclear from these facilities, when compared to alternatives, will avoid between $18 billion and $95 billion in carbon costs that ratepayers would have to fund if this output was replaced by fossil fuels.

 

Throughout our LTEP submission, we have outlined the positive role Bruce Power plays broadly in the province from both economic and social perspectives. These contributions are only possible thanks to the fact Ontario has a stable policy environment, with a long-term outlook that allows Bruce Power, as a private entity, to invest in, and take a broader view of, Ontario’s future.

 

In closing, there is one final item outside of our submission that is important to raise and it is related to the overall role of nuclear power in Ontario. As you know, Bruce Power and Ontario Power Generation (OPG) are working in collaboration to build a stronger nuclear industry in the province for decades to come through life-extension programs and long-term operations.

 

I want to commend your government for committing to the Darlington refurbishment project back in January of this year, as well as the life extension of Pickering to 2024. These are decisions that are important to the LTEP. It is only with all of us working together that we can offer Ontario families and businesses low-cost electricity, system reliability, clean air and a strong economy.

 

As always, I would be pleased to meet with you any time to discuss these matters further. Thank you and the Government for the opportunity to participate in this LTEP process.

 

Best regards,

 

Michael W. Rencheck

 

President & CEO

 

Bruce Power

 

Copy: Hon. Kathleen Wynne, Premier of Ontario

 

Members of the Legislative Assembly of Ontario

 

Serge Imbrogno, Deputy Minister of Energy

 

Bruce Campbell, President & CEO, IESO

 

Andrea Pastori, Ministry of Energy

 

[Original Comment ID: 206870]